The U.S. economy continues to be in recession and will continue to be for some time, according to billionaire investor Warren Buffet.

Appearing on CNBC Friday morning, Buffet said he is confident the economy is in recession because most Americans are worse off than they were, even though the technical definition of recession is two consecutive quarters of negative gross domestic product growth.

While he said the economy may be even worse off five months from now, Buffet said he's confident the U.S. will be in better shape five years from now.



The chairman and Chief executive of Berkshire Hathaway Inc. also said mortgage finance firms Fannie Mae and Freddie Mac and too big to fail, although he said that doesn't mean shareholder equity can't be wiped out. Buffet said the federal government will eventually have to step in and help.

"They're looking for help, obviously. And the scale of help is such that I don't think it can come from the private sector," Buffett said.

Buffet also said his firm Berkshire Hathaway has been receiving more offers to do "distressed" acquisitions. He said there are a greater number of potentially good business deals now compared to three years ago.

By Stephen Huebl and edited by Megan Ainscow